Kisan Credit Card (KCC) Scheme

The Kisan Credit Card (KCC) scheme, supported by the Modified Interest Subvention Scheme (MISS), is designed to provide timely, affordable, and collateral-free institutional credit to farmers and allied sectors. The main aim is to improve agricultural productivity and ensure financial security for farmers by reducing dependence on informal and high-interest sources of credit.

Evolution of the KCC Scheme

The Kisan Credit Card (KCC) scheme was launched in 1998 to provide short-term credit to farmers for agricultural needs such as crop cultivation, post-harvest expenses, and allied activities.

To make agricultural credit more affordable, the government introduced the Modified Interest Subvention Scheme (MISS) in 2006–07, which provides interest subsidies and concessional loans, especially during natural calamities.

Later, the Revised KCC (2020) modernised the system by introducing a RuPay-enabled smart card, enabling digital transactions, ATM withdrawals, and simplified banking access through commercial, regional rural, and cooperative banks.

Eligible Beneficiaries

The KCC scheme is inclusive and covers a wide range of beneficiaries, including:

• Owner-cultivator farmers

• Tenant farmers and oral lessees

• Sharecroppers

• Joint borrowers

• Self-Help Groups (SHGs)

• Joint Liability Groups (JLGs)

Credit Structure under KCC & MISS (2025–26)

Under recent revisions, credit support has been significantly enhanced:

• The crop loan limit has been increased from ₹3 lakh to ₹5 lakh

• The credit limit for fisheries and allied activities has also been raised to ₹5 lakh

• Collateral-free loans are available up to ₹2 lakh per borrower

• Short-term crop loans up to ₹3 lakh are provided at 7% interest, with a 3% interest subvention under MISS, making the effective interest rate 4%

Flexibility and Risk Support

The KCC provides revolving credit for up to 5 years, allowing farmers to withdraw and repay funds as per seasonal requirements.

In addition, it includes risk protection features, such as:

• Interest relief during natural calamities

• No interest burden for up to 1 year

• Extension of relief period up to 5 years in severe disaster situations

This ensures financial stability even during crop failures or climate shocks.

Digital Reforms and Onboarding

The scheme has been strengthened through digital integration:

• The use of PM-KISAN database for pre-filled applications has simplified onboarding

• The Kisan Rin Portal (2023) enables faster loan approval and better transparency

• The RuPay-enabled KCC card supports digital payments and easy access to credit

Scale and Impact of KCC

The scheme has achieved large-scale outreach in India:

• Over 7.72 crore active KCC accounts

• Outstanding credit of around ₹10.2 lakh crore

• Supported by 457 banks across India

A major impact of the scheme is its expansion beyond crop farming to animal husbandry, fisheries, and allied agricultural sectors, strengthening rural livelihoods.

Government Initiatives

The government has further strengthened the scheme through:

• Nationwide KCC Saturation Drives under Atmanirbhar Bharat Abhiyan

• Awareness campaigns to increase farmer participation

• Promotion of RuPay-enabled digital KCC cards